Too many CDs & MM? How much is enough

[Mark2024]

Our Cd, high yield money market and index linked annuities are about 1.2 million. Yes, we are in the preservation mode instead of seeking high growth.

Keep working for another 4 ~ 5 years to make sure we have enough to retire comfortably.

 

[Dtail]

Here is one of the sides from a 75 and 77 yr old. 45/14/41 Stock/Bond/Cash (CDs, MM). Retired. Investments are on autopilot for harvesting dividends/interest. No more investing in stocks. I use whatever cash I need/want although we are not high maintenance. No debt, no mortgage, medical is taken care of with Medicare and Tricare for life. NW continues to grow into way more than we will need. Being a bear of very little brain I don't pretend to know any of the financial calculations discussed here and my ability to use what I do understand may be starting to fade a bit. I don't see a good reason to continue playing the game to see how much more I can accumulate before we die. What would be a reason otherwise. But I do love to read all the posts here.

So you are (really) slowly letting the stock portion go down to zero by way of not reinvesting the dividends?

 

[Earl E Retyre]

Our approach is to have all our expenses covered via fixed income interest and the rest we put in equities and real estate. As a result we have over 50% of our AA in CDs. If the market crashes then it does not affect our living expenses. I bought a lot of brokered CDs (new and secondary market) when the CD market increased over the past year (and tried to get a lot out at 5 years).

 

[Badger]

So you are (really) slowly letting the stock portion go down to zero by way of not reinvesting the dividends?

The Stock (actually a MF - Wellington) shares remains the same as the dividends are swept into a MM in the IRA. The cash is then used for the RMD. I still have the same number of shares in Wellington that I started with about 5 years ago when I started RMD. Since the dividends have been swept into the MM for a number of years before starting the RMD it may be 10+ years before it is not sufficient for RMD.